(RTTNews) - Universal Music Group N.V. (UMG.AS, UNVGY, UMGNF), the Dutch-American music-based entertainment company, confirmed that it has received an unsolicited and non-binding proposal from Pershing Square Capital Management, L.P.
The company stated that it will review the proposal in line with its fiduciary duties and carefully assess its implications for shareholders, employees, artists, songwriters, and other stakeholders.
The Board of Directors expressed full confidence in UMG's strategy and in the leadership of Sir Lucian Grainge along with the company's management team. UMG added that it will not provide further comment on the proposal until the Board has completed its review.
Earlier today, Pershing Square Capital Management, L.P. announced that it has submitted a non-binding proposal to the Board of Directors of Universal Music Group N.V. ("UMG") to acquire all outstanding shares of UMG through a business combination transaction.
In the Transaction, UMG will merge with Pershing Square SPARC Holdings, Ltd. and the newly merged company will become a Nevada corporation, listed on the New York Stock Exchange. Pershing expects the transaction to close by year-end. UMG shareholders will receive a total of 9.4 billion euros in cash or 5.05 per share euros and 0.77 shares of New UMG stock for each share of UMG held. The total consideration package of cash and stock is estimated at 30.40 euros per share, representing a 78% premium to UMG's stock price.
UMG.AS closed Tuesday's regular trading at EUR 19.06, up EUR 1.95 or 11.40%.
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